The net national debt is smaller than the gross national debt because
A)some debt is held by foreigners.
B)some debt is held by U.S.citizens.
C)some debt is held by government agencies.
D)the government does not have to pay all of the debt.

Question

Quizplus · Accepted Answer

The net national debt is the gross national debt minus the portion of the debt that is held by government agencies, such as the Social Security trust fund. Therefore, choice C is correct, as some debt is held by government agencies and is not included in the net national debt. Choices A and B are incorrect, as both foreign and domestic individuals or entities can hold debt that is included in both the gross and net national debt. Choice D is incorrect, as the government is responsible for paying all of the debt, regardless of whether it is included in the gross or net national debt.

The Net National Debt Is Smaller Than the Gross National